A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Explaining the declined affordability of housing for low-income private renters across Western Europe
The private rented sector (PRS) recently enjoyed a revival, in particular in the years before and after the Great Financial Crisis (GFC). At the same time however, affordability concerns have come to the fore. The main aim of this paper is to explain trends in housing affordability for lower-income households in the PRS across Western European countries, from a supply versus demand perspective. To this end we: (1) related trends in housing affordability to wider changes in housing systems, welfare regimes, demographic indicators and housing market financialisation; and (2) decomposed affordability trends in terms of rents and incomes, controlling for compositional shifts. We incorporated the spatial dimension by distinguishing between urban and rural regions. Although we could not explicitly test for the more fine-grained mechanisms relating housing market financialisation to increased ‘unaffordability’ of PRS-housing, our findings nevertheless warrant future research into this topic. In particular in countries with strong financialisation (Ireland, the Netherlands, Spain and Portugal) decreasing affordability arises from the fact that during the period 1995–2007 private rent increases were not compensated for sufficiently by income growth. We furthermore found that across urban regions, between 1995 and 2007, affordability worsened through demand pressure arising from in-migration. Changes after the GFC (up to 2013) were more limited and diverse.
Explaining the declined affordability of housing for low-income private renters across Western Europe
The private rented sector (PRS) recently enjoyed a revival, in particular in the years before and after the Great Financial Crisis (GFC). At the same time however, affordability concerns have come to the fore. The main aim of this paper is to explain trends in housing affordability for lower-income households in the PRS across Western European countries, from a supply versus demand perspective. To this end we: (1) related trends in housing affordability to wider changes in housing systems, welfare regimes, demographic indicators and housing market financialisation; and (2) decomposed affordability trends in terms of rents and incomes, controlling for compositional shifts. We incorporated the spatial dimension by distinguishing between urban and rural regions. Although we could not explicitly test for the more fine-grained mechanisms relating housing market financialisation to increased ‘unaffordability’ of PRS-housing, our findings nevertheless warrant future research into this topic. In particular in countries with strong financialisation (Ireland, the Netherlands, Spain and Portugal) decreasing affordability arises from the fact that during the period 1995–2007 private rent increases were not compensated for sufficiently by income growth. We furthermore found that across urban regions, between 1995 and 2007, affordability worsened through demand pressure arising from in-migration. Changes after the GFC (up to 2013) were more limited and diverse.
Explaining the declined affordability of housing for low-income private renters across Western Europe
Dewilde, C.L. (author)
2018-01-01
Dewilde , C L 2018 , ' Explaining the declined affordability of housing for low-income private renters across Western Europe ' , Urban Studies , vol. 55 , no. 12 , pp. 2618-2639 . https://doi.org/10.1177/0042098017729077
Article (Journal)
Electronic Resource
English
DDC:
720
| Taylor & Francis Verlag | 2006
The Rental Picture: Low housing affordability and reduced supply bring renters' markets to an end
| British Library Online Contents | 2006
Lifetime Income and Housing Affordability in Singapore
| Online Contents | 2011
Housing Costs of Renters: 2000. Census 2000 Brief
| NTIS | 2003